Watching football in front of the new television with beer and bratwurst: The European Championship raises hopes for the weakening economy. But does the major event really bring more money into the coffers?
The German Economic Institute (IW) does not see this year’s European Football Championship as having any particular impetus for the weakening economy in Germany. As the IW in Cologne announced, it is not expected that consumer spending will increase.
They would just shift. The experience of the 2006 World Cup would have shown that. This means that expenses, such as for a new television, are saved elsewhere.
The IW also does not expect fans traveling from other European countries to have a positive impact on the German economy. If in doubt, they would simply push out other tourists. “A hotel room can only be allocated once,” said IW economist Michael Grömling. In addition, no money would flow into the construction of new roads or other infrastructure; the income from the TV rights went to the European football association UEFA in Switzerland.
Nevertheless, Grömling emphasized that one should not underestimate the emotional return of the European Championship. A major sporting event could brighten the mood and improve the image of the host country.
Source: Stern
